‘Industrial strategy’ Budget pivots to direct intervention and avoids radical reform, says KPMG

Tim Sarson, Head of Tax Policy at KPMG UK, said:

“This was a Budget that revealed the Treasury’s pivot from low taxes and spending restraint to direct intervention in supporting particular industries. While there was a great deal of focus on fiscal prudence, today’s speech by the Chancellor resembled a project wish list to reboot the economy and had a strong sense of industrial strategy about it.

“In tinkering with select areas of the tax system, the Chancellor left calls for fundamental reform to the tax system unanswered. There was surprisingly little on the environment ahead of COP26, neither was there any attention to addressing how we tax wealth and the way we work. Meanwhile there were generous changes to business rates, but these appear to be here to stay for the time being and have avoided the major reform that some have asked for. These were the dogs that didn’t bark that will still weigh heavily on the minds of businesses and individuals.

“While the creative, retail, hospitality and leisure industries will be encouraged by a noisy afternoon, the rest of the business community may just be relieved that it was relatively quiet Budget for them with few new tax obligations as they continue to consider increased Corporate Tax and National Insurance contributions.”

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For further information please contact:

KPMG Media Relations

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Alastair Henry (Citypress)

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Alastair.henry@citypress.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff. The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020.

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.